Digital marketing is continuing to grow compared to traditional forms of advertising among small and medium-sized companies (SMBs).
According to BIA/Kelsey, digital spending for US SMBs is expected to reach $16.6 billion annually by 2016.
That means 70 percent of SMB marketing budgets will be spent on digital. In 2010, SMBs spent 52 percent of their budgets on traditional marketing and advertising, but that number will shrink to 30 percent in 2015.
Neal Polachek, president of BIA/Kelsey, said SMBs are using digital practices to engage their customers for longer periods of time.
“With the advent of daily deals to drive customer acquisition, SMBs are now increasingly focused on leveraging technological solutions to engage, grow and retain a higher percentage of their customers,” said Polachek. “As this trend accelerates, these SMBs will turn to outside providers to harness simple tools, which will enable them to maximize the long-term value of each new customer they acquire.”
Some of the other Key takeaways from the report are as follows:
- Overall, U.S. SMB spending on media, marketing and business solutions will grow from $22.4 billion in 2010 to $40.2 billion in 2015, representing a compound annual growth rate (CAGR) of 12 percent.
- SMB spending on traditional advertising will be essentially flat during the forecast period, experiencing a 0.6 percent CAGR, from $11.8 billion in 2010 to $12.1 billion in 2015.
- SMB spending on digital/online media will grow from $5.4 billion in 2010 to $16.6 billion in 2015 (24.9 percent CAGR).
- SMBs will also increase spending on performance-based commerce and transaction platforms, from $1.7 billion in 2010 to $4.6 billion in 2015 (21.5 percent CAGR).
- Spending by SMBs on customer retention business solutions will grow from $3.5 billion in 2010 to $6.9 billion in 2015 (14.6 percent CAGR).
As you can see, digital marketing and advertising are becoming increasingly important. There’s no excuse for why you shouldn’t have your own digital marketing campaign. Contact us today to learn more.